The Central government, on May 30, further expanded the scope of the Emergency Credit Line Guarantee Scheme (ECLGS) by adding the Civil Aviation Sector and loans for oxygen generation plants under the scope of the scheme.

As per an official statement, the government additionally removed the loan outstanding ceiling of Rs 500 crore on sectors like hospitality, travel and tourism, leisure and sporting, and civil aviation, which means that even bigger entities with even higher outstanding loans in these sectors can avail of the ECLGS scheme.

An official statement said: "The modifications in ECLGS, would enhance the utility and impact of ECLGS by providing additional support to MSMEs, safeguarding livelihoods and helping in seamless resumption of business activity. These changes will further facilitate flow of institutional credit at reasonable terms."

Further, as the country faced a severe shortage of medical oxygen amid the second wave of Covid-19, the Centre has decided to offer 100 guarantee cover to loans up to Rs 2 crore to hospitals, nursing homes, clinics and medical colleges for setting up on-site oxygen generation plants.

The statement further said that borrowers who are eligible for restructuring as per RBI guidelines of May 5, 2021 and had availed loans under ECLGS 1.0 of overall tenure of four years comprising of repayment of interest only during the first 12 months with repayment of principal and interest in 36 months thereafter will now be able to avail a tenure of five years for their ECLGS loan.

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